December 2, 2024

Mitsubishi UFJ is Set to Acquire WealthNavi

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Mitsubishi UFJ Financial Group intends to acquire WealthNavi, the leading provider of discretionary investment services known for its robo-advisory offerings. The firm will initiate a tender offer shortly to buy all shares and transition WealthNavi into a wholly owned subsidiary. The company aims to enhance its asset management-related services in light of the growing popularity of the Nippon Individual Savings Account (NISA).

MUFG Bank, a company within the group, intends to execute multiple steps, including a mandatory share purchase following the tender offer (squeeze-out) by the end of the fiscal year. Mitsubishi UFJ raised its stake slightly to 15% in March and has since established a collaborative partnership. As of the market close on the 28th, WealthNavi's market capitalization stood at 62.7 billion yen. The additional shares Mitsubishi UFJ plans to buy are valued at 53 billion yen according to that day’s stock price, and they are currently calculating the premium.

WealthNavi is set to be removed from the TSE Growth Market. However, to foster growth, it plans to retain its management team and uphold its existing structure.

WealthNavi offers a service that automatically recommends and purchases optimal asset allocations for investors after they answer a few simple questions online. By the end of October, its deposit assets totaled 1.3 trillion yen, significantly surpassing competing banks like Money Design (Chiyoda-ku, Tokyo).

By establishing it as a wholly owned subsidiary, Mitsubishi UFJ can accelerate the creation of services offering optimal financial products via smartphone apps and other channels.